RioCan, Allied Properties team up to develop mixed-use properties

TORONTO — Two Canadian real-estate trusts are teaming up with a 50-50 partnership that will redevelop or intensify some of their properties in downtown areas of major cities, starting with two projects in Toronto.

RioCan Real Estate and Allied Properties say they will work together to satisfy the growing demand for mixed-use properties in Canadian cities.

Riocan has typically focused on intensifying retail properties, while Allied has specialized in office spaces.

The companies say there is a trend toward living, working and playing in the inner-city.

They’ll begin with two redevelopments in downtown Toronto, one near College Street and Manning Avenue and the other on King Street West at Portland Street.

They plan to create a mixed-use office, retail and residential complex at each site.

The one on College Street complex is expected to have 125,000 square feet of gross floor area.

The other complex, which will have frontage on King, Portland and Adelaide Streets, will have approximately 400,000 square feet of gross floor area.

The companies say these ventures are just the start of a collaboration that they plan to continue in other major Canadian cities.

Once the projects are complete, RioCan will act as property manager for the retail portions, while Allied will serve as property manager for the office portions.

Edward Sonshine, CEO of RioCan, said the combination of the properties “will create exceptional value creation opportunities for both RioCan and Allied’s unitholders.”